TOKYO, Sept 29 Aetos Capital, an investment
management firm, plans to raise $1 billion for a fourth real
estate fund to buy office buildings and condominiums in Japan and
China, a person with direct knowledge of the matter said.
Aetos Capital plans to raise the money by December and has
already gathered $250 million from investors, the person said, on
condition he was not identified.
Aetos joins other big real estate buyers starting funds to
purchase properties in Japan on the expectation that falling real
estate values will rebound.
Price declines are slowing, according to the Japan Real
Estate Institute. At the end of March commercial property values
in central Tokyo had contracted by only 2.4 percent from six
months earlier, compared with a 6.5 percent drop over a year, the
research company said.
Fortress Investment Group (FIG.N) set up an $800 million
Japan fund in June, while Morgan Stanley (MS.N) in the same month
established a $4.7 billion pool of cash to buy properties around
the world, including Japan.
Scott Kelley, Aetos Capital Asia LLC's chief executive,
declined to comment on the latest fund raising.
(Reporting by Junko Fujita; Editing by Tim Kelly and Nathan